More cuts needed at THAI
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Thai Airways needs to undertake further significant cost-cutting measures if it is to ride out the crises it currently faces, the Bangkok Post has reported. THAI has seen passenger levels slump recently due to the worsening global financial crunch and political unrest in Thailand.
“The cost-saving measures we have adopted are not enough as the situation seems to be getting worse. More drastic action is needed,” Thai Airways’ President, Apinan Sumanaseni said.
Possible measures may include making further cuts in routes and frequencies, and deferral of the planned acquisition of new aircraft, according to the report. However deliveries of aircraft to which the airline has already committed, including six Airbus A380’s, will not be cancelled. Apinan also ruled out staff cuts due to complicated Thai labour laws.
For the first three quarters of 2008, THAI has reported a combined loss of THB6.61 billion (US$191 million) compared with a THB2.53 billion profit during the same period in 2007. Analysts are reported to have said they expect THAI to continue to struggle in Q4, despite the airline having recently launched its new “Follow Your Dreams” promotional campaign to boost passenger numbers.
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